Limited Liability Company Qatar
The practice of company formation in Qatar has Limited Liability Company in Qatar(LLC Qatar) as one of the most common practices. Forming a Limited Liability Company in Qatar is one of the most convenient and highly preferred practices in Qatar for businessmen who wish to invest in Qatar.
Now let us begin with understanding what exactly is a Limited Liability Company in Qatar. A Limited Liability Company in Qatar is a type of partnership which is basically a hybrid of a legal entity having some characteristics of each – a corporation and a partnership or sole proprietorship (depending on the number of owners). An LLC is a type of unincorporated association which is different from a corporation. The main characteristic of an LLC that is common with a corporation is that it has a limited liability. The Limited Liability Company partnership is often considered to be more flexible than a corporation and it is more apt for individually owned companies.
The ground rule for company formation in Qatar is that a non-Qatari can invest in Qatar only through a joint venture company incorporated in Qatar. The partners of the company must include one or more residents of Qatar or must have 100 percent Qatari-owned entities holding no less than 51% of the share capital.
The concept of joint venture companies with Qatar residents as partners is allowed in all sectors of the economy excluding commercial agencies and real estate.
The foreign partners in partnerships must pay the full amount against their share of share capital to an authorized financial institution in cash prior to obtaining the Companies’ Commercial Registration. There is a minimum share capital for a Limited Liability Company in Qatar should be there at the time of registering a company in Qatar. However, the amount may change with time. As per the rules, the Company needs to put aside a sum of 10 percent of its net profit until the reserve stands at 50 percent of the total share capital amount. However, it must be noted that the company’s profit shares do not do not necessarily have to reflect their shareholdings. This implies to the fact that since this a Limited Liability Company, the profit sharing and the loss sharing may vary in percentages. There may be contractual partnerships wherein the partners only share the profits and not the losses.
If you are a foreign investor who is looking forward to invest in Qatar, we suggest you to invest through a joint venture company in a Limited Liability Company format. The LLC format having the basic ground rules of having Qatar residents as partners must be adhered to.
We also extend our complete assistance in the WLL company formation in Qatar (WLL Qatar).
WHAT DOES ONE UNDERSTAND BY THE TERM ‘WLL COMPANY FORMATION’?
WLL Company Formation also known as With Limited Liability Company Formation is a legal business entity which consists of two or more sharholders that are responsible for company’s debt only upto the extent of their shareholding.
The WLL Company Formation ensures flexibility as well as efficiency in it’s services and helps businessman and investors in seeking better avenues and progress in their career.
The WLL Company Formation helps in ensuring a greater flexibility in conducting of various business activities and helps various businesses to grow greater heights.
WLL COMPANY FORMATION IN QATAR
In recent times , Qatar has developed itself into one of the most premier destination for conducting various business activities. The WLL Company Formation has immensely benefitted clients in seeking better avenues as well as opportunities.
Some of the steps incorporated for opening. business are as follows
- Select a suitable and unique Company Name
- Provide a temporary Bank Account
- Provide Articles of Association
- Deposit Capital share
- Authentication of Articles of association
- Registration with Qatar Chamber of Commerce and Industry
- Obtain a Company Seal
- Obtain a Trade License
ADVANTAGES OF WLL COMPANY FORMATION IN QATAR
Some of the common benefits for WLL Company Formation in Qatar are as follows
- There is no prescribed limit over selling of products or services.
- The WLL Company is a local business company which is used to take part in some of government based tenders.
- The WLL Company Formation is not subjected to withhold taxation.